FHA Moves to Prevent 'Buy and Bail'--ZT

The Department of Housing and Urban Development is taking steps
to thwart borrowers who commit mortgage fraud in order to buy
another home at today\'s discounted prices then let their current
residence fall into foreclosure.

Federal Housing Commissioner Brian D. Montgomery issued Mortgagee
Letter 2008-25 Friday indicating the Federal Housing Administration
has observed a rising number of instances where borrowers are
abandoning their current residences to buy another property.

Some borrowers are choosing to relocate closer to their employment
while others are taking advantage of other home buying
opportunities arising in the marketplace.